Donald Trump’s trade adviser criticized Australia’s manufacturing industry, accusing them of waging 'frontal assaults' on the US aluminium market.
Peter Navarro's comments may affect Canberra's bid for exemption from US steel and aluminium tariffs.
Navarro claimed Australia and Canada were major threats to US aluminium markets, with Australia's 'heavily subsidized smelters' giving them an unfair advantage.
However, despite the accusation, Australia's aluminium exports to the US accounted for less than 3% of the total.
Navarro's claim about Australian smelters being heavily subsidized refers to the government initiatives to support smelters in transitioning to renewable energy.
Australia's ties to China and the global aluminium trade were also mentioned, but no evidence was presented to support the distortion claim.
There was a voluntary agreement between Australia and the US to limit aluminium exports, but it changed due to geopolitical events like the war in Ukraine.
After the agreement, Australia's aluminium exports to the US fluctuated, with an increase in 2022-2023 and a decrease in 2024.
Australia's position as an aluminium exporter to the US shifted due to changing demands and geopolitical factors.
The intricacies of the US-Australia aluminium trade relationship raise questions about agreements, tariffs, and industry dynamics.